Spirits group Diageo has announced plans of a joint venture in South Africa with Heineken.

The two companies announced yesterday that the new company, to be called Brandhouse, would combine their sales and marketing operations and should achieve sales of £270m.

Both companies hope the deal will enable Brandhouse to offer a portfolio of brands to supermarkets and bars.

This deal follows the acquisition last year by Diageo and Heineken of a 28.9% stake in Namibia Breweries.

In addition to a wide range of spirit brands such as Jonnie Walker, Bells and White Horse, Diageo has also completed an integration of the Guinness brand into the portfolio for its spirits brands.